Memorandum of Understanding - MOU

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DEFINITION of 'Memorandum of Understanding - MOU'

A legal document outlining the terms and details of an agreement between parties, including each parties requirements and responsibilities.

BREAKING DOWN 'Memorandum of Understanding - MOU'

The MOU is often the first stage in the formation of a formal contract. An MOU is far more formal then a handshake and is given weight in a court of law should one party fail to meet the obligations of the memorandum.

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RELATED FAQS
  1. What is the difference between a letter of intent and a memorandum of understanding?

    A letter of intent is likely to encompass a number of different aspects, and it varies in length according to the level of ... Read Full Answer >>
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    Sometimes waiver of subrogation clauses are ineffective at preventing a third-party lawsuits. In determining who is responsible ... Read Full Answer >>
  3. What is an alienation clause?

    Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should ... Read Full Answer >>

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